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    Principles of Corporate Finance
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    Exam 6: Making Investment Decisions With the Net Present Value Rule
  5. Question
    If the Nominal Interest Rate Is 7
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If the Nominal Interest Rate Is 7

Question 50

Question 50

Multiple Choice

If the nominal interest rate is 7.5% and the inflation rate is 4.0%,what is the real interest rate?


A) 4.0%
B) 9.5%
C) 3.4%
D) 11.5%

Correct Answer:

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